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Kik Acquires Video Chat Social Network Rounds for Reported $60-$80m

Kik has acquired Rounds, a Tel Aviv, Israel-based video-enabled real-time social network, in a bid to boost its group video chat features – which it launched in December 2016. The cost of the acquisition has not been confirmed, but it is rumoured to be within the region of $60-$80m (£48-£64m) by Israeli media.

All of Rounds’ employees will join the popular Canadian instant messaging platform as part of the deal, bringing its total headcount to 165. Furthermore, the addition has been accompanied by the opening of Kik product and engineering centres in Tel Aviv and Toronto, Ontario, Canada.

"Video is the natural evolution of chat and an integral part of expression and hanging out in real life. We saw Kik as the perfect partner to expand our reach to such a vast audience," said Dany Fishel, co-founder and CEO of Rounds. "It's rare when two companies share a similar culture and vision of connecting people through fun, meaningful experiences, and we're eager to build the next great platform together."

Rounds, founded in 2009, enables up to 12 friends to simultaneously video chat while experiencing activities together – such as watching videos, playing games or sharing photos. It claims to have more than 40m users worldwide and has raised $24m in funding.